I made one last purchase on Loyal3 before the 2016 year was over.
What I love about Loyal3 is you can invest with as little as $10 in a selection of companies and own partial shares. This really helps investors with little to no capital get a foot in the door without commissions eating up a certain percentage of their new capital. The only downsides are that there is a limited selection of companies you can pick from and they don't offer dividend reinvestment plans. That's fine with me since they have some good dividend growth companies I can invest in at zero cost.
I used $10 of dividends I had accumulated in my Loyal3 account to pick up 0.1864 shares of V.F. Corporation (VFC) at $53.65 per share. This is a dividend yield of 3.13%, adding $0.31 to my taxable dividend income.
One thing that's great about dividend growth investing is that it's practically a fool proof way of building wealth as long as you save, invest consistently, and reinvest your dividends. The power of compounding from reinvested dividends plus fresh capital put to work plus dividend raises is pretty much a guaranteed success formula. It's not a get rich quick scheme, but it is a strategy that builds wealth over time.
What do you think of my recent stock purchase?